Yahoo Finance Live anchors discuss the earnings report from Take-Two Interactive and the outlook for gaming trends.

Video Transcript

- Also, let's talk about Take-Two. It takes two to make a thing go right. Those earnings have lifted the stock, as CEO Strauss Zelnick says that while video games have dipped below their pandemic highs, gamers are still playing more than they were before the COVID era. Shares are up here on the day by about 9% here. It looks like about $10 early in trading here, as of right now.

And I think the gaming environment, too, we're looking for some of that continued strength. The titles that Take-Two has, of course, the NBA 2K looking to get some of those in-game competitions coming back, too. I was actually at one of those back in, I believe, 2018, 2019. And there's so much fanfare that actually is driven around these in-person gaming events, especially because they have those partnerships with major leagues, like the NBA, too.

And so we'll see when that comes back and what type of fanfare that continues to drive going forward from here.

- Yeah I'm surprised by the strength this quarter out of Take-Two. Especially, you look at the NPD video game sales data that came out a couple of days ago, sales in the first quarter down 1%. You know, it was also interesting to hear on the conference call big buff Strauss Zelnick, the CEO of Take-Two Interactive. He did note and I think it's a little flippant, I think he actually has to acknowledge what is going on in the real world here, he notes monetary changes in the market value-- in the market are kind of irrelevant to us, trying to, I think, quiet concerns on why his stock is down about close to 40% year to date.

But still, I would have liked to see him acknowledge that there is this world out there, and his stock has been hammered, along with the rest of the market.

- Yeah, it's a fair point. I mean, it's also interesting to see that even though the forecasts here are not fantastic from Take-Two, the stock is doing quite well. For the year, Take-Two is projecting revenue, adjusted revenue, of as much as $3.85 billion. The estimate was for $4.08 billion. And adjusted earnings per share forecast is below estimates, as well, but it looks like that people are sort of shrugging that off.

Remember, they're in the process of buying Zynga, too, so that was not yet reflected in these numbers. But obviously, they will be reflected in the numbers going forward. I mean, just by what you're saying about ZelnicK'S comments, I mean, I do wonder if you are spending on video games, is that one of the last things that you are willing to give up if you're cutting other spending. I don't, I don't know, but if that's your primary recreation, maybe it is.